What does the reconstruction value meter entail?
When you are looking into building insurance, you will regularly come across the term "reinstatement value meter".
What is a rebuilding value meter?
The rebuilding value meter can help you to easily calculate the rebuilding value of your building. In other words, what will it cost to rebuild my house after it has been lost due to damage. To determine this the rebuilding value meter can be used.
What is a reconstruction value
The reinstatement value is used to determine the amount for which you should insure your home. The reinstatement value is the amount needed to rebuild your home in the same place and in the same way. Many people have doubts when they see the reinstatement value and wonder if they have the right building insurance. The reinstatement value is often lower than the value at which they bought the house. This is because the sales value also takes into account the location of the house and the land. Because the location and the land are not lost in a fire, you do not need to insure them and they do not count towards the reinstatement value. Therefore, the reinstatement value is often lower than the sales value.
In addition to the sales value and reinstatement value, there is also the WOZ value. This is largely related to the sales value and also takes the land and the location into account in the calculation. The WOZ value is therefore often higher than the reinstatement value.
When to use a rebuilding value meter?
The reinstatement value meter is often used when taking out new building insurance. In order to qualify for the guarantee against underinsurance, you often have to fill in the reinstatement value meter when taking out the insurance. The amount of the rebuilding value meter determines the insured amount and therefore also the costs of the building insurance.
Of course, there are also other ways to determine the reinstatement value of your home. For example, using a (more extensive) valuation report. However, the reinstatement value is not mentioned in a standard valuation report.
What is guarantee against underinsurance?
The insurer assumes, because of your statement at the inception of the insurance, that the reinstatement value of your home is X euros. Should it turn out that this value is lower than the actual new-build value of your home, you are underinsured. You will then only be compensated for part of the damage and will not be able to rebuild the house as it was.
To avoid this, you can take out insurance with a guarantee against underinsurance.
How does the rebuilding value meter work?
The reinstatement value is determined on the basis of the type of home (terraced house, detached house, etc.), the contents of the house and the finish of the house, among other things.
Can everyone use the rebuilding value meter?
Anyone can use the rebuilding value meter, but it cannot be used for all types of property. Think for example of a national monument or a special canal house.
Is a reinstatement value meter valid forever?
Often the insurer will ask you to fill in the reinstatement value meter every 5 years in order to maintain the guarantee against underinsurance. This will also be asked when you move house.
Is everything included in the rebuilding value meter?
The foundation is not included. However, if the foundation is also damaged, a new foundation will have to be made when the house is rebuilt. This, of course, also costs money. Most building insurance policies allow you to insure the foundation for a certain extra premium.
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